The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled
A) investments
B) long-term liabilities
C) current assets
D) intangible assets

Question

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Discount on Bonds Payable is an account in the long-term liabilities section of the balance sheet, which represents the difference between the face value of bonds and the amount received by the issuing company when bonds were sold at a discount. The balance in Discount on Bonds Payable that is applicable to bonds due in three years would also be reported in the long-term liabilities section of the balance sheet.

The Balance in Discount on Bonds Payable That Is Applicable